Ex4-2 Complete the worksheet

The adjusted trial balance columns of the worksheet for Desousa Company are as follows.

DESOUSA COMPANY
Worksheet (Partial)
For the Month Ended April 30, 2015

Adjusted Trial Balance Income Statement

Account Titles Dr. Cr. Dr.
Cash 10,000
Accounts Receivable 7,840
Prepaid Rent 2,280
Equipment 23,050
Accumulated Depreciation - Equipment 4,921
Notes Payable 5,700
Accounts Payable 4,920
Common Stock 20,000
Retained Earnings 7,960
Dividends 3,650
Service Revenue 15,590
Salaries and Wages Expense 10,840
Rent Expense 760
Depreciation Expense 671
Interest Expense 57
Interest Payable 57
Totals 59,148 59,148

Instructions:
Complete the worksheet.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?"

DESOUSA COMPANY
Worksheet (Partial)
For the Month Ended April 30, 2014

Adjusted Trial Balance Income Statement

Account Titles Dr. Cr. Dr.
Cash 10,000
Accounts Receivable 7,840
Prepaid Rent 2,280
Equipment 23,050
Accumulated Depreciation - Equipment 4,921
 Notes Payable 5,700
Accounts Payable 4,920
Common Stock 20,000
Retained Earnings 7,960
Dividends 3,650
Service Revenue 15,590
Salaries and Wages Expense 10,840 10,840
Rent Expense 760 760
Depreciation Expense 671 671
Interest Expense 57 57
Interest Payable 57
Totals 59,148 59,148 12,328
Net income 3,262
Totals 15,590

After you have completed the requirements of E4-2, consider these additional questions.
Answers are on the other tab in this file.
1. Suppose Accounts Receivable balance changed to $10,840 and Service Revenue changed to $18,590, wha
the Balance Sheet?
2. Suppose Desousa received a utility bill for $375 which they failed to record. What is the impact on the In
April 30, 2015

Income Statement Balance Sheet

Cr. Dr. Cr.

r a formula in cells with a "?" .

PANY
rtial)
April 30, 2014

Income Statement Balance Sheet

Cr. Dr. Cr.
10,000
7,840
2,280
23,050
4,921
 5,700
4,920
20,000
7,690
3,650
15,590

57
15,590 46,820 43,288
3,262
15,590 46,820 46,550

nue changed to $18,590, what is the impact on the Income Statement and

What is the impact on the Income Statement and the Balance Sheet?
Ex 4-3 Prepare financial statements from worksheet
Worksheet data for DeSousa Company are presented in E4-2 and reproduced below.

DESOUSA COMPANY
Worksheet (Partial)
For the Month Ended April 30, 2015

Adjusted Trial Balance Income Statement

Account Titles Dr. Cr. Dr.
Cash 10,000
Accounts Receivable 7,840
Prepaid Rent 2,280
Equipment 23,050
Accumulated Depreciation - Equip 4,921
Notes Payable 5,700
Accounts Payable 4,920
Common Stock 20,000
Retained Earnings 7,960
Dividends 3,650
Service Revenue 15,590
Salaries and Wages Expense 10,840
Rent Expense 760
Depreciation Expense 671
Interest Expense 57
Interest Payable 57
Totals 59,148 59,148

Instructions:
Prepare an income statement, a retained earnings statement, and a classified balance sheet.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?"

DESOUSA COMPANY
Income Statement
For the Month Ended April 30, 2015
Revenues
Service revenue $ 15,590

Expenses
Salaries and wages expense $ 10,840
Rent Expense 760
Depreciation expense 671
Interest expense 57
 Total expenses 12,328
Net income $ 3,262

DESOUSA COMPANY
Retained Earnings Statement
For the Month Ended April 30, 2015
Retained Earnings, April 1 $ 7,960
Add: Net income 3262
$ 11,222
Less: Dividends 3650
Retained Earnings, April 30 7572

DESOUSA COMPANY
Balance Sheet
April 30, 2015
Assets
Current assets
Cash $ 10,000
Accounts receivable 7,840
Prepaid rent 2,280
Total current assets $ 20,120
Property, plant, and equipment
Equipment 23,050
Less: Accumulated depreciation - equipment 4,921 18,129
Total assets $ 38,249

Liabilities and Stockholder's Equity

Current liabilities
Notes payable $ 5,700
Accounts payable 4,920
Interest payable 57
Total current liabilities $ 10,677
Stockholder's Equity
Common stock 20,000
Retained earnings 7,960
Total liabilities and stockholder's equity $ 38,637

After you have completed the requirements of E4-3, consider these additional questions.
Answers are on the other tab in this file.
1. Suppose Accounts Receivable balance changed to $10,840 and Service Revenue changed to $18,590, wha
the Balance Sheet?
2. Suppose Desousa received a utility bill for $375 which they failed to record. What is the impact on the In
0, 2015

Income Statement Balance Sheet

Cr. Dr. Cr.

ed balance sheet.
or a formula in cells with a "?" .
enue changed to $18,590, what is the impact on the Income Statement and

. What is the impact on the Income Statement and the Balance Sheet
P4-1A Prepare a worksheet, financial statements, and adjusting and closing entries
The trial balance columns of the worksheet for Lampert Roofing at March 31, 2015 are as follows.

LAMPERT ROOFING
Worksheet
For the Month Ended March 31, 2015
Trial Balance
Account Titles Dr. Cr.
Cash 4,500
Accounts Receivable 3,200
Supplies 2,000
Equipment 11,000
Accumulated Depreciation-Equipment 1,250
Accounts Payable 2,500
Unearned Service Revenue 550
Common Stock 10,000
Retained Earnings 2,900
Dividends 1,100
Service Revenue 6,300
Salaries and Wages Expense 1,300
Miscellaneous Expense 400
23,500 23,500

Other data:
1. A physical count reveals only $550 of supplies on hand.
2. Depreciation for March is $250.
3. Unearned service revenue amounted to $210 at March 31.
4. Accrued salaries and wages are $700.

Instructions:
(a) Enter the trial balance on a worksheet and complete the worksheet.
(b) Prepare an income statement and retained earnings statement for the month of March
and a classified balance sheet at March 31.
(c) Journalize the adjusting entries from the adjustments columns of the worksheet.
(d) Journalize the closing entries from the financial statement columns of the worksheet.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .

(a) LAMPERT RO
Worksh
For the Month Ended
 Account Titles Trial Balance
Dr. Cr.
Cash 4,500
Accounts Receivable 3,200
Supplies 2,000
Equipment 11,000
Accumulated Depreciation-Equipment 1,250
Accounts Payable 2,500
Unearned Service Revenue 550
Common Stock 10,000
Retained Earnings 2,900
Dividends 1,100
Service Revenue 6,300
Salaries and Wages Expense 1,300
Miscellaneous Expense 400
Totals 23,500 23,500
Supplies Expense
Depreciation Expense
Salaries and Wages Payable
Totals
Net income
Totals

(b) LAMPERT ROOFING

Income Statement
For the Month Ended March 31, 2015
Revenues
Service Revenues $ 6,640
Expenses
Salaries and wages expense $ 2,000
Supplies expense 1,450
Miscellaneous expense 400
Depreciation expense 250
Total expenses 4,100
Net income $ 2,540

LAMPERT ROOFING
Retained Earnings Statement
 For the Month Ended March 31, 2015
Retained Earnings, March 1 $2,900
Add: Net income $ 2,540
5,440
Less: Dividends 1,100
Retained Earnings, March 31 $ 4,340

LAMPERT ROOFING
Balance Sheet
March 31, 2015
Assets
Current Assets
Cash 4,500
Accounts receivable 3,200
Supplies 550
Total current assets $ 8,250
Property, plant and equipment
Equipment 11,000
Less: Accumulated depreciation -equipment 1,500 9,500
Total assets $ 17,750

Liabilities and Stockholder's Equity

Current liabilities
Accounts payable 2,500
Salaries and wages payable 700
Unearned service revenue 210
Total current liabilities 3,410
Stockholder's equity
Common stock 10,000
Retained earnings 4,340 14,340
Total liabilities and stockholder's equity $ 17,750

(c ) Adjusting entries:

Mar 31 Account 1,450

Account

Mar 31 Account 250

Account
 Mar 31 Account 340
Account

Mar 31 Account 700

Account

(d) Closing entries:

Mar 31 Account 6640

Account

Mar 31 Account 4,100

Account
Account
Account
Account

Mar 31 Account 2,540

Account

Mar 31 Account 1,100

Account

After you have completed the requirements of P4-1A, consider these additional questions.
Answers are on the other tab in this file.
1. Suppose the March 31 balance of Supplies changed to $750, show how this changes the Worksheet, Incom
and both adjusting and closing entries.
2. Suppose the March 31 balance of Unearned Service Revenue changed to $350, show how this changes the
and both adjusting and closing entries.
e as follows.

a in cells with a "?" .

LAMPERT ROOFING
Worksheet
For the Month Ended March 31, 2015
 Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr.
4,500 4,500
3,200 3,200
1450 550 550
11,000 11,000
250 1,500
2,500
340 210
10,000
2,900
1,100 1,100
340 6,640 6640
700 2,000 2,000
400 400

1450 1450 1450

250 250 250
700 700
2740 2740 24,450 24,450 4,100 6640 20,350
2540
6,640 6640 20350
1,450

250
 340

700

6,640

2,000
1,450
400
250

2,540

1,100

changes the Worksheet, Income Statement, the Balance Sheet,

50, show how this changes the Worksheet, Income Statement, the Balance Sheet,

`
Balance Sheet
Cr.

`
1,500
2,500
210
10,000
2,900

700
17,110
2540
20,350
P4-1B Prepare worksheet, financial statements, and adjusting, and closing entries.
Pevnick Inc. began operations as a detective agency on January 1, 2015. The trial balance columns of the worksheet
Pevnick Inc. at March 31 are as follows.

MICHAEL PEVNICK, P.I,

Worksheet
For the Quarter Ended March 31, 2015
Trial Balance
Account Titles Dr. Cr.
Cash 11,400
Accounts Receivable 5,620
Supplies 1,050
Prepaid Insurance 2,400
Equipment 30,000
Notes Payable 10,000
Accounts Payable 12,350
Common Stock 20,000
Dividends 600
Service Revenue 13,620
Salaries and Wages Expense 2,200
Travel Expense 1,300
Rent Expense 1,200
Miscellaneous Expense 200
55,970 55,970

Other data:
1. Supplies on hand total $280.
2. Depreciation is $800 per quarter.
3. Interest accrued on 6-month note payable, issued January 1, $1, 300.
4. Insurance expires at the rate of $200 per month.
5. Services performed but unbilled at March 31 total $2,030.

Instructions:
(a) Enter the trial balance on a worksheet and complete the worksheet.
(b) Prepare an income statement and a retained earnings statement for the quarter and a
classified balance sheet at March 31.
(c) Journalize the adjusting entries from the adjustments columns of the worksheet.
(d) Journalize the closing entries from the financial statement columns of the worksheet.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .

(a) PEVNICK, INC.

 Worksheet
For the Quarter Ended Mar
Account Titles Trial Balance
Dr. Cr.
Cash 11,400
Accounts Receivable 5,620 ( e)
Supplies 1,050
Prepaid Insurance 2,400
Equipment 30,000
Notes Payable 10,000
Accounts Payable 12,350
Common Stock 20,000
Dividends 600
Service Revenue 13,620
Salaries and Wages Expense 2,200
Travel Expense 1,300
Rent Expense 1,200
Miscellaneous Expense 200
Totals 55,970 55,970
Supplies Expense (a)
Depreciation Expense (b)
Accumulated
Depreciation- Equipment
Interest Expense ( c)
Interest Payable
Insurance Expense (d)
Totals
Net Income
Totals

(b) PEVNICK INC.

Income Statement
For the Quarter Ended March 31, 2015
Revenues
Service Revenues $ 15,650
Expenses
Salaries and wages expense $ 2,200
Travel expense 1,300
Rent Expense 1,200
Depreciation expense 800
Insurance expense 600
Supplies expense 770
 Interest expense 300
Miscellaneous expense 200
Total expenses 7,370
Net income $ 8,280

PEVNICK INC.
Retained Earnings Statement
For the Quarter Ended March 31, 2015
Retained Earnings, January 1 $20,000
Add: Net income $ 8,280
28,280
Less: Dividends 600
Retained Earnings, March 31 $ 27,680

PEVNICK INC.
Balance Sheet
March 31, 2015
Assets
Current Assets
Cash 11,400
Accounts receivable 7,650
Supplies 280
Prepaid Insurance 1,800
Total current assets $ 21,130
Property, plant and equipment
Equipment 30,000
Less: Accumulated depreciation -equipment 800 29,200
Total assets $ 50,330

Liabilities and Stockholder's Equity

Current liabilities
Notes payable 10,000
Accounts payable 12,350
Interest payable 300
Total current liabilities 22,650
Stockholder's equity
Common stock 20,000
Retained Earnings 7,680 27,680
Total liabilities and stockholder's equity $ 50,330
(c ) Adjusting entries:

Mar 31 Account 770

Account Account

Mar 31 Account 600

Account Account

Mar 31 Account 300

Account

Mar 31 Account 600

Account

Mar 31 Account 2,030

Account

(d) Closing entries:

Mar 31 Account 8,280

Account

Mar 31 Account 7,370

Account
Account
Account
Account
Account
Account
Account
Account

Mar 31 Account 8,280

Account
 Mar 31 Account 600
Account

After you have completed the requirements of P4-1B, consider these additional questions.
Answers are on the other tab in this file.
1. Suppose services performed but unbilled changed to $1,750, show how this changes the Worksheet, Inc
and both adjusting and closing entries.
2. Suppose insurance expiration changed to $350 per month, show how this changes the Worksheet, Incom
and both adjusting and closing entries.
nce columns of the worksheet for

a in cells with a "?" .

PEVNICK, INC.
 Worksheet
For the Quarter Ended March 31, 2015
Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr.
11,400 11,400
2,030 7,650 7,650
(a) 770 280 280
(d) 600 1,800 1,800
30,000 30,000
10,000
12,350
20,000
600 600
( e) 2,030 15,650 15,650
2,200 2,200
1,300 1,300
1,200 1,200
200 200

770 770 770

800 800 800

(b) 800 800

300 300 300
( c) 300 300
600 600 600
4,500 4,500 59,100 59,100 7,370 15,650 51,730
8,280
15,650 15,650 51,730
770

600

300

600

2,030

8,280

2,200
1,300
1,200
200
800
300
600
770

8,280
 600

s changes the Worksheet, Income Statement, the Balance Sheet,

hanges the Worksheet, Income Statement, the Balance Sheet,

Balance Sheet
Cr.

10,000
12,350
20,000

800

300

43,450
8,280
51,730